EU banks fear fresh blow on Basel credit risk capital rules

Possible revised standardised approach would favour US banks for corporate exposures

Dollar on boot crushing euro
Sharp disadvantage: dispute centres on use of external credit ratings in the Basel framework

Non-US banks are increasingly alarmed that a possible compromise at the Basel Committee on a revised standardised approach for calculating credit risk capital requirements could leave them at a sharp disadvantage compared with their US peers.

"We have heard something quite worrying from the point of view of European and Asian jurisdictions – apparently [the Basel Committee] has recalibrated downwards the risk weights for investment grade-equivalent corporates for use in jurisdictions where

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